1. What is the dispute or issue that you are to negotiate over? Our team (Town of Richland) is about to negotiate with River City, considering various factors both on short term and long-term basis. The factors are as follows: - • Incorporate the town of Richland
o Clean water supply
o Place second water main
• Inter state development
• Pollution control
What do you want to achieve from this negotiation?
➢ The incorporation hopefully could be achieved from this negotiation. ➢ The main achievement is to procure clean drinking water for the whole
town of Richland. ➢ At least 20% of the properties go for annexation and not allow less than
49% of the properties to be annexed. ➢ Provide better infrastructure to the people.
➢ Eradicate the health issues (cancer) caused by pollution.
From your analysis, what are your interests and options? What are the interests and options of the other party? The main interest is to get clean water supply for the whole town as it is causing people to opt for annexation and secondly provide healthy, pollution free environment for one and all living in Richland. Further our interest is to see the economic growth, which would increase the property value as a result enhancing the revenue. Ultimately stop annexation, which would help us retain the surplus budget of $600,000.
“Options for water:
1) Buy water from River City for Liberty Island residents $1 to $2 million or more for a year
2) Buy water from River City for whole Town of Richland residents $1.5 to $5.5 million for a year
$1.5 to $3 million + $50,000 to $ 80,000 for Water Mains
3) Buy water from Magnolia
$1 million for storage tank;
$10.5 million to run a pipe below Lake Virtue +$50,000 to $ 80,000 Water Mains
4) Buy water from Apple City
$12 million + $50,000 to $ 80,000 Water Mains
5) Drill own well and lay own water mains
$1.5 to $2.5 million + $50,000 to $ 80,000 Water Mains $5 to $6 million Equipment+ $0.5 to$1.5 million maintain the system
6) Temporary well
$2 to$2.5 million annually
Options for incorporation
$1 million Government grant
Addition issue bonds for $500,000
10% interest $50,000
Total $550,000 pay for 10 years
Options for interstate Corridor Development
1) With River City
Taxes and fees
2) Develop by private developer
one-time revenue Gain
3) Deal with Magnolia, Split the revenue, 55% for Richland and 45% for Magnolia
Options for pollution from the Incinerator
1) Close the incinerator and build a new incinerator or a landfill to the downstream $22 to $37 million
2) Install modern pollution control equipment on the existing incinerator $9 to $12 million”
(Case Sheet Of Richland)
What is your BATNA?
“We consider three Best Alternative to a Negotiated Agreement as follow: a. Magnolia will agree to build our own water system and supply us with water for a one-time cost of $10.5 million. b. We will be able to incorporate. Legal fees and court costs will be $250,000. Besides that, we will receive a $1 million one-time grant. c. We will develop the interstate property with Magnolia. And pay a one-time cost of $4 million. However, we will be receiving $1.1 million annually in property taxes and one-time revenue of $7,000 from the sale of timber and soil.” (Case Sheet of Richland)
What will be your negotiating style? Why?
“Among the various styles of negotiation which includes: • Competing - Confident and forceful style of negotiation • Accommodating - Liberal and...
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